The morning news. [volume] (Savannah, Ga.) 1887-1900, 1887-06-23
A NAPOLEON OF FINANCE
LEAD PENCIL COLLATERAL FOR
MILLIONS.


tion of the Fidelity National Bank pro
ceeds the enormous deficit is increased II
is now the common talk on the streets that
the liabilities of the bank will reach the
stupendous sum of S6,000,000, while the
assets dwindle in proportion. 1t seems a
foregone conclusion that the depositors will
get next to nothing. This is the general
talk, but of course it is unofficial and can
not be verified until the bank examiner
completes his work and makes his
report. 1t is stated to-day that
the memorandum which is a
substitute for the collaterals, shows that
Joseph Wiltshire used $i,100,000 of the
banks money, and that collaterals for the
other loans were hypothecated in New Y ork
and elsewhere. 1t is the belief of some that
Wiltshire acted as the agent of Harper in
conducting the wheat deal and was not
really borrower, Vice President Harper,
Cashier Baldwin and Assistant Cashier Hop
klns are under arrest on warrants sworn out
by Bank Examiner Powell. Harpers bail
is fixed at S75, 900 and the others at SIC, 900
each.
MILLIONS SHORT.
The morning papers this morning are
full of the matter connected in various
ways with the Fidelity National Banks
closing, Among other things, it is stated
that bank examiner Powell, on Monday af-
ternoon, demanded a statement from the
bank and received one, showing a balance
on hand of 81 1000 900 in cash. Then calling
for a view of this money he was amazed to
be shown lead pencil memoranda reading
wiltshire, EcSert & Co $4,000 - ~. w.
Wiltshire SAC, ,000,n and so on through long
list There was no collateral and no Sc
curity whatever, Baldwin & Hopkins were
unable to make any explanation and Harper
could offer none even after this. 1t is said
the offer to permit the bank to continue was
made, if these three men were expelled and
new capital brought in. But when inquiry
was made as TO how much would be re-
quired, the answer was 81 100000 at least.
That staggered the directors and although
they still hope to form a reorganization, it
is most probable that the fear that further
examination would reveal a further deficit,
deferred them.
HARPER's WORK ENTIRELY.
The fact is that Harper concealed from
the directors his connection with the wheat
deal. He is said to have admitted yester-
day that he did not go into the wheat deal
himself. but that he honored an overdraft
for Joe Wiltshire for $4,000 and then put
in the rest to save that He charges the
whole break to tho action of the Chicago
Board of Trade making all wheat regular.
Bank Examiner Powell is credited with
saving that the condition of the bank is
w0eful He said it was singular how Har-
per had deceived everybody about the
matter In this I connection it may be
recalled that when the wheat panic occurred
in Chicago and the rumors were current of
run on the Fidelity Bank, Harper stated
repeatedly TO the parties asking for informa-
tion, that he did not know who was iii the
wheat deal, and he went so far as to say
that he did not believe that it was managed
at all in Cincinnati, but was conducted from
California and Cleveland.
More attachments on Harper's property
have been made, and everything be has is
now tied up.
OTHER ENTANGLEMENTS COMING IN.
A publication was made here to-day that
Swift & Lyman, the attorneys for the Ex-
change National Bank, of Chicago, were
here to push n claim of S750,0 against the
Fidelity. The truth is that the amount was
S19S. .667 Last Saturday Mr.. Swift pre-
sented certificate of deposit and demanded
the money. He was told that the American
Exchange did not nave that sum to its
credit He then demanded the balance
whatever it might be, and was told that pay
ment had been stopped In view of the ap-
parent negligence of President Briggs, Mr.,
Swift and the other directors, there is
strong talk of causing their arrest, although
it would be hard to find even suffering
creditor in Cincinnati to demand it,
SHORT AND QUICK WORK.
One who knows, but who declines to give
his name, says that ten days ago he, with
President Swift, went over and called the
loan account, and found it all right He
saws lie is certain that Mr.. Harper had done
ali this crooked work within the past ten
days or two weeks, and it could not well be
known. He does not think there is any re-
Election on President Swift.
While there is no effect upon the other
banks from this failure, there is marked
restriction of business. Business men stand
appalled, as the glaring features OF this great
fraud are revealed.
SERIOUS CHARGES MADE.
Bank Examiner Powell has been exceed
ingly busy all day, in the attempt to get
some knowledge OF the condition of the
Fidelity Bank. The Receiver has not yet
undertaken the responsibility of his office
Mr. Powell to-day made discoveries which
justified him, under advice of District At
for-ney Burnet and Assistant Bruce, to cause
the arrest the second time of Harper Bald
win and Hopkins This is new feature Of
the case, as it consists OF the
charge of q conspiracy TO defraud,
DN issuing on june - IIIee vi aus vi Fioo'-
900 each in favor of Wiltshire, Eckert ~ Co.
upon the Chemical National Bank OF New
York. signed by B. y. Hopkins, assistant
cashier The charge is conspiracy 70 com
NIT an offense against the laws OF the United
States by unlawfully and wilfully misapply-
ing the funds and credits Of the banking in-
stitution, in pursuance Of which purpose
they issued these drafts.
FALSE REPORTS RENDERED.
Another affidavit charges the same per-
sons with "a conspiracy to commit an oifense
against the United States laws by issuing
on Nav IL last, and causing to be transmit
ted TO the Comptroller of the Currency, a
false and fraudulent report Of the said
Fidelity National Bank, at the close Of busi
ness, May 49, 1887, in this, that the said
bank did not have in its possession, as stated
In said report $500 900 in legal tender notes
and S2o6,3l0 in silver certificates, they
knowing these amounts were not
there and making the statement
In pursuit of their conspiracy to
deceive certain officers of said national
bank and the agent appointed to examine
the affairs Of said bank" The arrest was
made upon these affidavits, which were
sworn to by Mr.. Powell late this afternoon
The prisoners were taken together before
United States Commissioner Hooper, where
they waived examination, and were bound
over 10 appear at the October term OF court
Mr.. Harper gave bonds in the sum Of
&l5,00D aud the other two IN so,OOO
each. Mr.. Hopkins seemed much detected,
and said that as 70 the last charge ne
knew nothing NJ all about the making Of
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